Diocese of St. Cloud, abuse survivors reach tentative deal that includes Chapter 11 bankruptcy, $22.5M fund
ST. CLOUD, Minn. (FOX 9) - The Diocese of St. Cloud announced Tuesday it has reached an agreement with the survivors of clergy sexual abuse on a framework for a resolution of all clergy sexual abuse claims against the diocese and area parishes.
The resolution will include the diocese filing for Chapter 11 bankruptcy in the near future. In the Chapter 11 bankruptcy, the diocese will reorganize in a way that will provide for a $22.5 million trust to compensate survivors of clergy sexual abuse.
The Diocese of St. Cloud had announced its plans for file for Chapter 11 bankruptcy two years ago in order to help pay restitution to the survivors of clergy abuse.
“Reaching a framework for resolution prior to filing Chapter 11 bankruptcy significantly reduces administrative fees in the bankruptcy and preserves a larger estate to fund the trust for survivors,” Bishop Donald Kettler said in a statement.
The deal also includes a commitment from the diocese to disclose the names of all clergy against whom credible claims of abuse have been made and to release the files of those clergy.
The diocese is still encouraging anyone who suffered sexual abuse to report such abuse to local law enforcement, regardless of when it occurred.